Obama: 'Revving' economy calls for higher wages

MILWAUKEE, Wis. >> President Barack Obama renewed his push for Congress to raise the minimum wage Monday in a buoyant accounting of the economy's "revving" performance, delivered on behalf of Democrats opening their fall campaigns for the midterm congressional elections.

"America deserves a raise," he told a union crowd in Milwaukee, vowing to keep a hard sell on Congress in much the way he once courted his wife. "I just wore her down," he cracked.

"By almost every measure the American economy and American workers are better off than when I took office," he said, rattling off a string of improving economic indicators even while acknowledging not all people are benefiting. "The engines," he said, "are revving a little louder."

It was, at least indirectly, a pep talk for Democrats facing tough races in a nation still gripped with economic anxieties.

The emphasis on the minimum wage is designed to draw campaign contrasts with Republicans, many of whom maintain that an increase would hurt small businesses and slow down hiring. No one expects Congress to act on it before the November elections.

Despite the absence of a federal increase, 13 states raised their minimum wages at the beginning of this year. Those states have added jobs at a faster pace than those that did not raise the wage, providing a counterpoint to a Congressional Budget Office report earlier this year that projected that a higher minimum wage of $10.10 an hour could cost the nation 500,000 jobs.

Until now, Obama and his White House aides had been reluctant to draw too much attention to positive economic trends, worried that some may prove illusory or that, even if they hold, many working Americans continue to live on the edge of poverty and take no comfort in the upswing.

But in Milwaukee, Obama dared to say of the job picture, "We're on a streak."

White House aides still insist they are not declaring full victory over the lingering effects of a recession that ended five years ago.

But White House officials believe it is time to highlight recent improvements, in part to strengthen a difficult political environment for Democrats and to counter public perceptions that are eroding the president's public approval. Officials say Obama's most compelling case is to compare the economy now to what he inherited in 2009 in the aftermath of a near Wall Street meltdown.

Obama, whose public approval is at about 40 percent, has also been cautious about making appearances in states with close midterm political contests and where his popularity might be even lower.

But in coming to Wisconsin, he brought his Labor Day message to the state that was the epicenter of a fight over the collective bargaining rights of public employees. Labor Secretary Tom Perez and several national labor leaders came with him.

In Wisconsin, Republican Gov. Scott Walker, who pushed through a law that stripped most public sector union members of their ability to collectively bargain, is now in a tight re-election campaign and has been mentioned as a potential GOP presidential candidate in 2016. Polls find that Walker and Democrat Mary Burke are deadlocked with the election just over two months away.

Walker was at General Mitchell International Airport to greet Obama upon his arrival in Milwaukee. Walker also greeted the labor leaders accompanying Obama, including Mary Kay Henry of the Services Employees International Union and Leo Gerard of the United Steelworkers Union.

The White House is encouraging Democrats to draw attention to the recovery as they head into the November mid-term elections.

In an August memo to House and Senate Democrats, Obama's top two economic advisers underscored the positive news: more than 200,000 jobs created per month for six consecutive months, a six-year high in auto sales, second-quarter economic growth that exceeded expectations and an expanding manufacturing sector.

The unemployment rate stands at 6.2 percent, dropping 1.1 points over the past year, and the stock market has nearly tripled in five years.

Even so, there is still significant weakness in the labor market, underscored by the long-term unemployed. Labor participation has dropped. As well, real hourly wages fell from the first half of 2013 to the first half of 2014 for all income groups, except for a 2-cent increase for the lowest income level, according to the liberal Economic Policy Institute.

Americans seem caught between confidence and worry.

In July, the Conference Board's consumer confidence index rose to its highest reading since October 2007, two months before the Great Recession began. But a new survey by Rutgers University found that Americans are more anxious about the economy now than they were right after the recession ended.

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justmyview371wrote:

Yeah but you (Obama) had nothing to do with the economic gains. In fact, you set the economy back with your policies such as ACA, etc.

on September 1,2014 | 09:27AM

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1localwrote:

eliminate all taxes for those making less than $50,000.00 annually. increase taxes on all with a gross income of over $100,000.00. limit all government aid programs for those able to work. Government breeds inactivity and dependence...

on September 1,2014 | 12:12PM

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seriouswrote:

Surprised he didn't mention Sam, since he's now unemployed!!

on September 1,2014 | 12:22PM

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soundofreasonwrote:

Sam could be his son ;)

on September 1,2014 | 01:26PM

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wilikiwrote:

If you earn less that 50,000, then the govtr really needs to decrease your payroll taxes. Incrome taxes at the low end don't amount to much.

on September 1,2014 | 05:06PM

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ISCREAMwrote:

That's right...make them totally dependent on the government and have no responsibility for funding the operations that keep them safe and sound...good job wiliki...another socialista....

on September 1,2014 | 05:31PM

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Lamscorpwrote:

You are kidding right?

on September 2,2014 | 05:28PM

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krushawrote:

Fix the corporate tax loopholes that reward companies that move their HQs to foreign countries such as Burger King is doing. Seems like every American company is going to try that same stunt if congress doesn't do something about it.

on September 1,2014 | 04:21PM

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localguywrote:

USA has the world's highest corporate tax rate. Need to bring it down to the average of other countries. So where is our congress on this? Where they usually are, without a clue.

on September 1,2014 | 04:45PM

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ISCREAMwrote:

Obama and Schatz deserve each other...

on September 1,2014 | 05:34PM

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DAGR81wrote:

Obama is all about talk.

on September 1,2014 | 05:47PM

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Carang_da_buggahzwrote:

Under this administration, the average family income has actually declined. This is an economic "gain" alright…in the WRONG direction. Note to obama: No matter how you and your cheerleading media try to spin things, we've been on to you since Day One. Only your most faithful and gullible subjects are still foolishly and naively buying your impressive rhetoric. You haven't a clue how to even run a Mom and Pop store. If you had, it would've been boarded up 6 years ago, so quit pretending. "Community Organizer", "Leader of the Free World". What a joke.

on September 1,2014 | 10:08AM

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palaniwrote:

Obama's relentless war on the middle class continues unabated, despite his rhetoric. His definition of economic gain is to reduce the size of the pie, so everyone gets a smaller slice.

on September 1,2014 | 10:30AM

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Winstonwrote:

Key tenant of socialism: spread the misery evenly.

on September 1,2014 | 12:50PM

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alliewrote:

agree...

on September 1,2014 | 02:16PM

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jussayinwrote:

Very true. It is a fact that the average family income has declined. But you won't hear that from Obama. And yup, he has no clue on how to run a business. For that matter, he's not that good on foreign affairs. To give him credit, he's good in making many feel good. Saw him on Ellen while I was channel surfing but I didn't watch it.

on September 1,2014 | 11:59AM

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alliewrote:

Obama has the temerity to play games with these people? he has never been an advocate of the poor or middle class. he has loyally served Wall Street interests and interests of the billionaires who pull his chain.

on September 1,2014 | 02:16PM

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aomohoawrote:

Yes he sold any integrity to the highest bidder!

on September 1,2014 | 07:04PM

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Tita Girlwrote:

Barry, my two dogs have created more shovel ready jobs than you have. Just saying.

on September 1,2014 | 11:00AM

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localguywrote:

My three cats would disagree, two litter boxes. hahahaha

on September 1,2014 | 04:45PM

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HonoluluHawaiiwrote:

Make sure Barry that u

on September 1,2014 | 11:30AM

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HonoluluHawaiiwrote:

do not interfere with free market activity

on September 1,2014 | 01:12PM

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HonoluluHawaiiwrote:

Otherwise u may be accused of

on September 1,2014 | 02:01PM

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HonoluluHawaiiwrote:

being comparable to

on September 1,2014 | 03:41PM

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HonoluluHawaiiwrote:

A. Adolph Hitler

B. Joseph Stalin

C. Ferdinand Marcos

D. All of the above

E. None of the above

on September 1,2014 | 04:25PM

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GorillaSmithwrote:

Terrific. The Obamster has gotten bored with turning a blind eye to our porous borders, decimating the nation's health care system and dithering over ISIS. Now he's going to expand the disaster to gut millions of minimum wage jobs. I'd be happier if he kept playing golf.

on September 1,2014 | 01:21PM

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HonoluluHawaiiwrote:

Please peruse this week's Investors Business Daily front page article, as they comment on Obama becoming less and less effective. The President is supposed to work with Congress, not go at it alone. Perhaps a better moniker would be Adolph Obama or Barack Hitler.

on September 1,2014 | 03:53PM

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tigerwarriorwrote:

@GorillaSmith
According to the Bureau of Labor Statistics, a measly 1.1% of the U.S. workforce earns minimum wage--which amounts to 1.6 million minimum-wage employees out of 144 million Americans who are employed. So if one were to read between the lines, the income inequality which Obama proposes to bridge, will only benefit 1.1% of the workforce.

on September 1,2014 | 05:31PM

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AhiPokewrote:

Our campaigner in chief has done it again. To him it's all about the next election as oppose to doing the right thing. Everyone would like to be paid more, including me. On the other hand paying more without increased productivity will only create inflation. The good news is that he only has about two more years. I hope he doesn't do irreparable damage before then.

on September 1,2014 | 01:22PM

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HD36wrote:

It amazes me that people are ignorant enough to listen to his speeches.

on September 1,2014 | 02:36PM

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Tita Girlwrote:

You're being very kind. I would have said Stupid because they believe the golfer-in-chief.

on September 1,2014 | 03:31PM

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HonoluluHawaiiwrote:

Hehehehe.

on September 1,2014 | 03:50PM

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aomohoawrote:

Well ,with his low approval rating his charisma is not going very far any longer.

on September 1,2014 | 07:06PM

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soundofreasonwrote:

Let's see now. Hawaii mandated employer mandated health insurance and NOW people complain about working 2-3 PART time jobs. Increase the wages and people with then have less JOBS. Automation is on it's way people. Just keep pushing the incentive. THAT'LL work out well for ya.

on September 1,2014 | 01:29PM

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HonoluluHawaiiwrote:

The Big Q today reveals something as it concludes that people are not happy about their jobs.

on September 1,2014 | 03:45PM

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rigorwrote:

Raises only for those that merit raises, not just because...

on September 1,2014 | 01:57PM

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HonoluluHawaiiwrote:

Yes, although historically the minimum wage has risen commensurate at least to inflation. However if the minimum wage were to given too much of a boost, inflation will kick in, sort of like the tail wagging the dog.

on September 1,2014 | 03:47PM

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Maiponowrote:

Obama really needs a class in economics, by increasing the minimum wage, low skill workers will be hurt as they will lose jobs. But what does the president care about that, he got his, that's all that matters.

on September 1,2014 | 02:32PM

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HonoluluHawaiiwrote:

Perhaps that's what Obama's intent is: I HAVE COLLEGE TUITION TO PAY FOR MALIA AND SASHA. CONGRESS I AM NOT PAID ENOUGH, GIVE ME MORE DOUGH.

on September 1,2014 | 03:49PM

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HD36wrote:

In 2009 the Federal Reserve balance sheet was $800 billion. It took over 100 years for the US to borrow that much money from this private cabal of secret banks. In just a few months, Obama tripled it. Now the debt is over $4.3 trillion. The result of QE, (money printing digital style) has kept interest rates at historical lows. With banks able to leverage carry trades and front run the fed bond buying program, they made billions with 0% risk. The 4.2% revised GDP in the 2nd quarter needs to be averaged with the -2.9% in the 1st quarter and you get close to flat line growth. The main stream propaganda, that the economy has recovered, doesn't factor the real possibility of rising interest rates, a bond market collapse, a currency devaluation, another war, or any other thousands of black swans out there.

on September 1,2014 | 02:35PM

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HonoluluHawaiiwrote:

How is the dollar amounts in percentage terms analysis or just looking at absolute numbers the best analysis?

on September 1,2014 | 03:43PM

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HD36wrote:

You could also say that the Federal Reserve has increased the money supply through debt monetization by over 400% since 2010.

on September 1,2014 | 06:33PM

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tigerwarriorwrote:

What mainstream media often fails to mention is that most of the income gains earned during the recovery from the Great Recession were in the form of higher stock prices, rising home values and surging corporate profits which have led to the skyrocketing of recovery-era incomes of the most affluent--namely the top one percent--while the vast majority of Americans have yet to realize any increase in real income--largely due to years of high unemployment and stagnant wages for the working poor and middle class. Case in point: Today's SA poll shows that the majority polled are pretty much in the same economic situation, while many are worse off than a year ago.

on September 1,2014 | 05:47PM

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HD36wrote:

This was Ben Bernanke's doctrine of the "Wealth Effect". By pumping up and re-inflating the bubbles that popped in 2008, he believed that people would feel wealthier and spend more money. The stock market is trading at more than 20x trailing earnings using GAP accounting, which by historical charts, is in the nose bleed section. The Russell 2000, an index of small cap stocks, is trading at 80x earnings which is higher than before the market collapsed in 2007.

on September 1,2014 | 06:38PM

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tigerwarriorwrote:

Consumer spending is the major driving force of the economy--so creating the wealth effect can lead to a stronger economy. However, when spending becomes irrational--as in irrational exuberance--it leads to millions of Americans spending way beyond one's mean which contributed to the credit crunch and the housing market bubble--which when burst was bad for the economy. Unfortunately, many don't learn from the past as history will repeat itself and lead to an even greater economic collapse--which will take money out of the hands of the poor and middle class and transfer it to the wealthy as this has been done during the recent economic recovery. While normal market corrections are healthy--when P/E ratios of stocks spiral out of control--we are bound to see a crash sooner or later.

on September 1,2014 | 09:49PM

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ISCREAMwrote:

“Mankind is divided into rich and poor, into property owners and exploited and to abstract oneself from this fundamental division and from the antagonism between poor and rich means abstracting oneself from fundamental facts”
This quote...Obama or J. Stalin??

on September 1,2014 | 03:52PM

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HonoluluHawaiiwrote:

Both

on September 1,2014 | 03:55PM

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Maneki_Nekowrote:

Obama has made the rich richer. Everybody else got the shaft.

on September 1,2014 | 04:37PM

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cojefwrote:

When everything said and done, we have exported all the good paying jobs abroad and thus create a large service industry which in essence is low paying "mom and pop" shops. Only with hard work and minimum pay job hires can mom/pop succeed. Individuals on fixed income like retirees are being screwed as usual with inflation waiting in the wings.

on September 1,2014 | 05:00PM

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HD36wrote:

You can thank Bill Clinton for granting China, most favored nation status in 1990. He said manufacturing jobs were a thing of the past for America. We're moving into an internet age where our economy will run off computer related jobs.

on September 1,2014 | 06:40PM

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sluggahwrote:

Reving??? Only if you're driving a Yugo! BO wouldn't know what a revving economy was if it hit him in the head.

on September 1,2014 | 05:12PM

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DAGR81wrote:

What about helping the small businesses that struggle to provide
these jobs.